A federal class-action lawsuit filed in California on June 25 accuses Micron, Samsung, and SK Hynix of coordinating to restrict memory chip supply and artificially inflate prices — a serious antitrust allegation targeting the core of the DRAM market. Simultaneously, Michael Burry — famous for betting against the housing market before the 2008 crash — disclosed a short position in Micron, framing it as a broader skepticism toward AI-driven demand narratives. This comes despite Micron having just reported the strongest quarterly results in its history.
The lawsuit creates direct legal liability risk for Micron that could result in substantial fines, damages, and reputational damage — even if the company wins the case, litigation costs and uncertainty weigh on the stock. Burry's short adds a high-profile sentiment headwind, and his AI skepticism signals that some sophisticated investors believe the memory chip demand cycle may be closer to its peak than its beginning. Investors holding MU, or broader semiconductor ETFs like SOXX and SMH, should watch this closely.
Watch for: Micron's next earnings report (next quarterly earnings, ~late September). Any court updates or motions in the California class-action case. Further 13F filings revealing the size of Burry's short position (~mid-August, next filing window).
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